USD/JPY rebounds above 108.00 on renewed USD strength
|- USD/JPY continues to have a tough time making a decisive move.
- US Dollar Index climbs above 91.30 in American session.
- Initial Jobless Claims in US declined to 547K last week.
The USD/JPY pair dropped to a daily low of 107.82 during the European trading hours but managed to erase its losses in the second half of the day. As of writing, the pair was unchanged on the day at 108.05.
Despite the latest fluctuations, USD/JPY struggles to make a decisive move in either direction and remains on track to close the third straight trading day virtually flat around 108.00.
DXY edges higher in American session
Earlier in the day, the greenback faced modest bearish pressure as rising European equity indexes didn't allow safe-haven assets to find demand. Nevertheless, with Wall Street's main indexes opening in the negative territory, the US Dollar Index (DXY) turned north and helped USD/JPY rebound.
The weekly data published by the US Department of Labor revealed that Initial Jobless Claims declined to 547,000, compared to analysts' estimate of 617,000. Moreover, the Federal Reserve Bank of Chicago's National Activity Index improved to 1.71 in March from -1.2 in February.
In the meantime, the benchmark 10-year US Treasury bond yield is posting small gains at 1.561%, providing additional support to the USD.
On Friday, the National Consumer Price Index (CPI) data from Japan will be looked upon for fresh impetus. New Home Sales and Markit Manufacturing PMI will be featured in the US economic docket.
Technical levels to watch for
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